The '100 Envelope Challenge' on TikTok: Is It a Realistic Way to Save Money?

In recent months, social media platforms have been abuzz with financial advice and challenges, including the popular '100 Envelope Challenge.' The challenge promises to help young investors save more than $5,000 in just 100 days by simply labeling 100 envelopes from one to 100 and filling them with money over time.

While it's understandable that people want to find ways to save money, experts are questioning whether this challenge is a realistic or effective way to do so. Certified financial planner Doug Flynn of Flynn Zito Capital Management argues that the idea may be more hype than substance. 'There's no question TikTok offers an abundance of questionable financial advice,' he says.

One of the main concerns with the 100 Envelope Challenge is where the money is coming from to fill these envelopes. Some people don't even make $5,000 in 100 days, making it difficult for them to participate in the challenge. Additionally, the fact that some individuals have claimed to save as much as $15,000 by completing the challenge multiple times raises questions about its feasibility.

Another issue with the challenge is the emphasis on aesthetics rather than financial literacy. The envelopes should look 'really cool' for social media videos, which may lead people to prioritize appearances over actual savings goals. Furthermore, the challenge focuses on saving a large amount of money quickly, which may not be realistic or sustainable for many individuals.

According to Bankrate, 57% of US adults can't afford a $1,000 emergency expense, and young generations such as GenZers and Millennials are more likely to be worried about covering basic expenses rather than stashing away savings. This highlights the need for financial education and literacy, which is not necessarily addressed by the 100 Envelope Challenge.

In conclusion, while it's commendable that people want to save money, the '100 Envelope Challenge' may not be a realistic or effective way to do so. Financial experts recommend prioritizing sustainable savings goals, budgeting, and financial literacy over quick fixes like this challenge.